KUALA LUMPUR: DRB-HICOM Bhd is roping in China-based Jiangsu Xinquan Automotive Trim Co Ltd (XQ) in a joint venture in RM64.4 million investments to support Proton Holding Bhd’s business.

DRB-HICOM’s indirect subsidiary HICOM-Teck See Manufacturing Malaysia Sdn Bhd has entered into a shareholders agreement with XQ to form the joint venture company to be based in Malaysia with the former owning 51 per cent stake.

HICOM-Teck is a 51 per cent-owned subsidiary company of HICOM Holdings Bhd which in turn is a wholly-owned subsidiary company of DRB-HICOM.

The joint venture company will be principally involved in designing, developing and manufacturing instrument panel, floor consoles and door trims and related components for vehicles.

Via the joint venture, DRB-HICOM said it will be able to continue supporting Proton’s business which includes expansion into the Asean market.

The joint venture company is also targeting to penetrate the Asean market with products manufactured using new technology, it added.

“Barring any unforeseen circumstances, the proposed joint venture is expected to contribute positively to the future earnings of the group,” DRB-HICOM said.

The group said the joint venture will not have any material effects on the company’s issued and paid-up share capital and substantial shareholders’ shareholdings.

DRB-HICOM plans to fund its initial capital contribution for the joint venture from its internally generated funds and bank borrowings.

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